Bitcoin vs Ethereum Community split between capped supply and deflationary model
Bitcoin vs Ethereum Community: Those who advocate for the cryptocurrency Bitcoin said that Ether’s monetary policy has been altered at least seven times, but Bitcoin’s has remained unchanged.
In this article Bitcoin vs Ethereum Community, Bitcoin and Ether, the two most valuable cryptocurrencies on the market, have been compared to and competed with each other for a long time. At the start of the new year, the first argument started comparing the supply of BTC, which is capped at 21 million, to the supply of ETH, which is decreasing. People don’t agree on whether or not the two can be called “sound money.” Someone on Twitter with the handle “ultrasound money” who is interested in Ethereum made a comparison between how BTC and ETH are issued and said, “If BTC’s capped supply is sound, then ETH’s decreasing supply is ultrasound.”
The comparison between the two did not go down well with proponents of BTC, who were quick to point out that soundness is derived from the legitimacy of the monetary policy and not from a policy that is constantly changing. Dan Held, a well-known advocate of Bitcoin, identified the fault in the argument and made the observation that an argument that is always evolving has less credibility. He said that “time creates trust with people,” adding that “it’s not all about code.” If I were to follow your reasoning, it would be “safer” if we created a new cryptocurrency with even more of a focus on deflation.
Bitcoin vs Ethereum Community
Another person who supports Bitcoin has cast doubt on Ethereum’s monetary policy by saying that the same policy has “changed at least 11 times in its seven years of existence.” Bitcoin’s monetary policy, on the other hand, has never been changed in any way.
Due to the implementation of Ethereum improvement proposal-1559 in August 2021, Ether went into deflationary circulation (EIP-1559). The update included the implementation of a burn mechanism that automatically destroys a part of the transaction fee, so reducing the total amount of ETH that is in circulation.
Anthony Sassano, an independent Ethereum educator, rebutted Alex Gladstein’s claim that “admins” have the ability to arbitrarily change Ethereum’s monetary policy by asserting that every change on the Ethereum network had been approved by the thousands of node operators who are run by community members. Gladstein argued that “admins” have this power.
According to Leo Glisic, the inventor of the Maitri network, ETH has developed into a reliable form of currency, but BTC won’t reach its maximum value until the year 2140.
In the past, Bitcoin has been subjected to modifications of the same kind, both in terms of its monetary system and its original code. The most significant one occurred in 2017 when there was a rising demand for expanding the Bitcoin block size so that it could allow more transactions per block and make it more scalable.
The consensus among members of the Bitcoin community was to maintain their opposition to introducing any kind of alteration to Satoshi Nakamoto’s original code. Because of this, the Bitcoin network went through a hard split in 2017, which resulted in the creation of Bitcoin Cash, a cryptocurrency that has a block size of 8 MB, in comparison to the 1 MB used by BTC. However, as of today, BCH has seen virtually little on-chain development, and its price has fallen by 97% from its all-time high. This has led to a reduction in trading activity.
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